NEW YORK (TheStreet) -- On Tuesday Starbucks (SBUX) announced that it will close the 23 locations of its La Boulange pastry chain by the end of this September as it works to achieve long term growth targets.
"Based on our ongoing evaluation, Starbucks has determined La Boulange stores are not sustainable for the company's long term growth," the coffeehouse chain said in a statement. Starbucks noted that it will continue to sell the brand's food in its stores.
Shares of Starbucks are up by 0.52% to $53.24 at the start of trading on Wednesday morning.
The company noted that in its most recent quarter (Q2, 2015) food delivered a 16% year-over-year growth and contributed two points to the comp growth with every daypart platform and region adding to the rise.
Separately, TheStreet Ratings team rates STARBUCKS CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate STARBUCKS CORP (SBUX) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: